July 31, 2009
US corn, soy futures rebound as dollar slips, boost demand outlook
Corn and soy futures gained as the dollar rally stalled, increasing demand prospects for US crops. Wheat climbed from the lowest price since March.
The Dollar Index, which tracks the greenback against the currencies of six major US trading partners, slipped for the first time in three days, making US supplies more attractive to buyers holding other currencies. The index on Wednesday (Jul 29) touched the highest level since July 17, prompting the biggest drop in commodity prices in eight weeks.
December-delivery corn advanced 0.5 percent to US$3.2975 a bushel on the Chicago Board of Trade, gaining for the first time in three days. The most-active contract has dropped 10 percent this month, extending June's 16-percent loss.
Soy for November delivery climbed 1.2 percent to US$9.2725 a bushel. The oilseed declined 5.5 percent this month, after plunging 17 percent in June.
Exporters in the US, the world's biggest supplier of soy, sold 232,000 tonnes of the oilseed to China for delivery in the marketing year that begins September 1, the US Department of Agriculture said on Wednesday (Jul 29).
Cool temperatures will continue to slow development for soy and corn crops in the Midwest in next five days "and possibly longer," DTN Meteorlogix LLC said in a report.
The USDA is scheduled to release August 12 the result of a survey of farmers in Illinois, Indiana, Kentucky, Missouri, North Dakota, Ohio and Pennsylvania, which will show the effect of cold weather on corn plantings.
Wheat for September delivery added 0.4 percent to US$5.1375 a bushel. The grain fell 0.9 percent on Wednesday (Jul 29) after touching US$5.05, the lowest since March 4.
Japan, Asia's biggest wheat importer, bought 144,000 tonnes of milling wheat for October shipment, including 102,000 tonnes from the US, in a tender on Thursday (Jul 30).
Argentina will get more dry weather in the coming week, affecting wheat crops, the Buenos Aires Cereals Exchange said in its weekly weather report. The nation was the world's sixth-largest wheat exporter in the 2008-2009 marketing year, according to the USDA.
